BULLETIN NO. 018
Issued May 2000
Revised July 2013
THE RETAIL SALES TAX ACT
FARM-USE EQUIPMENT AND OTHER ITEMS
This bulletin outlines the Retail Sales Tax exemptions allowed on farm implements and
machinery, repair parts for such farm implements and machinery, and other items used
“principally for farming”.
Section 1 - GENERAL INFORMATION
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The exemptions for farm-use equipment apply to farmers as well as to
those who provide contract farming services (e.g., custom crop spraying,
drainage works, etc.).
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Farming means the growing of field crops, primary production of food
and raising of livestock on farmland for commercial sale. Farming also
includes beekeeping, mink ranching, mushroom growing, harvesting wild
rice, sod growing, tree nursery/greenhouse, poultry hatching and raising
of fish for sale as food.
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Livestock means animals that are raised or kept commercially
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for sale as food;
for the sale of their products as food; or
for the sale of their hides, hair or furs.
Exempt items used principally for farming fall into the following
categories:
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Those that may be taxable when used in operations other than
farming, but when used principally for farming qualify for the farm
exemption. A “Farm-Use Certificate” as described on the next page
must be obtained by the vendor when selling these items (see List
“A”).
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Those that are readily identifiable as farm-use equipment and
generally have no other application. Vendors are not required to
obtain a “Farm-Use Certificate” on sales of those items (see List “B”).
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See List “C” for those items that are always taxable at the time of sale.
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See List “D” for items that are commonly used for non-farming purposes
but may in some cases be used principally for farming. In this case the
farmer must pay the tax to the vendor at the time of purchase, but may
be eligible for a tax refund upon review by the Taxation Division.
Note: Revisions to contents of previous Bulletin (April 2011) have been identified by shading (
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Bulletin No. 018
Definition of
“principally for
farming”
Farm-Use Equipment and Other Items
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Farm equipment is considered to be “principally for farming” if it is used
at least 80 per cent for farming purposes during the 24 month period
after purchase. Equipment used more than 20 per cent for non-farming
purposes during the first 24 months after purchase is subject to tax on
the full purchase price.
Example: A farmer purchased a tractor and used it 10 per cent of the
time to mow grass for a municipality on their road allowances and 90 per
cent for grain farming. In this case the tractor qualifies for the farming
exemption.
Farm-use
certificate
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Where equipment used principally for farming in the 24-month period
immediately following acquisition is subsequently switched to non-farm
use, no tax applies on the change in use. However, repairs and
maintenance to equipment no longer used principally for farming are
taxable.
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In the case of non-organic fertilizers and other farm crop chemicals, they
are used “principally for farming” if at least 80% of them are used on
farm crops.
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Where a vendor is required to obtain a Farm-Use Certificate at the time
of selling equipment purchased “principally for farming” (see list “A”), it
must be in the following form:
“I hereby certify that the goods shown on this invoice are farm
implements, farm machinery or repair parts therefor, and will be used
principally for farming.
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Date
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Purchaser's signature and land description
It must be printed, typed, written or applied by rubber stamp on the copy
of the invoice or other document supporting the sale.
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When selling non-organic fertilizers, insecticides, fungicides, herbicides,
rodenticides, agricultural lime, weed control chemicals, or livestock
waste treatment chemicals, the Farm-Use Certificate should be
amended as follows:
“I hereby certify that the goods shown on this invoice are non-organic
fertilizers, insecticides, fungicides, herbicides, rodenticides, agricultural
lime, weed control chemicals, or livestock waste treatment chemicals
and will be used principally for farming.”
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When selling drugs and medicines for livestock used directly in farming
production, the Farm-Use Certificate should be amended as follows:
“I hereby certify that the drugs and medicines shown on this invoice are
for livestock used directly in farming production.”
Bulletin No. 018
Farm-Use Equipment and Other Items
Page 3 of 10
Section 2 - EXEMPTION FOR EQUIPMENT AND OTHER ITEMS USED FOR FARMING
List “A”
Conditionally
exempt
THE SELLER IS REQUIRED TO OBTAIN A FARM-USE CERTIFICATE TO
SUPPORT THE SALE OF THE FOLLOWING ITEMS:
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Aeration equipment specifically designed for storing grain, potatoes or
other farm crops.
Aircraft that are specifically designed and licensed for farm spraying and
are used principally for that purpose.
Antibiotic test kits used to test cow's milk.
Barn cleaning equipment including high pressure washers.
Batteries, tires and tubes specifically designed for use in farm
machinery. This exemption is not allowed on batteries, tires and tubes
that can be used for a truck or car.
Bird scare cannons.
Bluestone purchased for adding to water in a dugout.
Boxes for farm trailers or wagons. This exemption is not allowed on
boxes for trucks required to be licensed under The Drivers and Vehicles
Act.
Branding irons.
Bull nose rings.
Cabs designed for exempt farm machinery.
Calcium chloride for tractor tires.
Chemical applicators for the care of livestock.
Containers for dead animal pick up.
Containers for farm produce including barrels, drums, boxes, crates,
cartons, sacks, milk cans and pails.
Coverings specifically designed for exempt farm machinery.
Crawler tractors and six-wheel drive tractors for farm use.
Debeakers.
Dehorning paste.
Drugs and medicines for the purpose of diagnosis, treatment, mitigation
or prevention of disease in livestock that are used directly in a farming
operation.
Earth moving equipment, including trenchers, used for clearing or
levelling farm land or otherwise moving earth for farm purposes. (Road
construction and maintenance is not farm use).
Egg candlers, graders and washers.
Electric generators (heavy duty) and solar panels used exclusively in
farm production. But lighting plants, generators and emergency power
transfer switches used on a farm site for domestic use are taxable.
Electric power converters used exclusively for the operation of a grain
dryer or other farm equipment.
Electrical systems and components (such as, electrical wiring,
transformers, panels, plugs, switches and installation or repair labour)
used to supply electricity for exempt farm equipment, but not systems or
components used to supply electricity for general-use, e.g., to a farm
residence or shop, lighting in a barn and other equipment that is not
exempt farm equipment.
Farm fencing for livestock and poultry including barbed wire, fence posts,
staples, electric fence equipment and other materials that are designed
for farm fencing, but not including general purpose materials (see List
Bulletin No. 018
Farm-Use Equipment and Other Items
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“D” for exception).
Farm tractors and attachments.
Farm trailers and wagons that are not required to be licensed under The
Drivers and Vehicles Act.
Fertilizers
(non-organic),
insecticides,
fungicides,
herbicides,
rodenticides, agricultural lime, weed control chemicals.
Field drainage tiles and related materials.
Filters for exempt farm equipment (gas, oil and air filters).
Front-end loaders, blades and forklifts for farm and garden tractors.
Garden and lawn tractors and attachments.
Grain handling equipment including dryers, cleaners, augers and
conveyers.
Grain shovels, forks and related items. This exemption is not allowed on
shop tools, hand tools or shop equipment.
Grain storage bags.
Granaries purchased by a farmer that are designed and used exclusively
for storage of grain. (See Bulletin No. 021 – Granaries and Farm Storage
Buildings.)
Guidance devices for exempt farm equipment, including Global
Positioning Systems (GPS) equipment used directly for farming
operations, e.g. aerial crop spraying.
Haystack covers including related weights and rope.
Heaters, radios and air conditioning equipment that are specifically
designed for farm machinery. If not specifically designed, they must be
already installed when the exempt farm machinery is purchased.
Heating systems and components (including heat exchangers, boilers,
ducting, piping, valves, etc. and installation or repair labour) used
specifically for the caring of livestock or growing of plants for sale, but
systems or components (including materials and installation labour) used
to supply heat for general-use e.g. to a farm residence, office, equipment
shed, are taxable.
Hoists including power take-offs for farm trucks.
Horse harness.
Horticultural charcoal, vermiculite and perlite.
Hydraulic oil and fluid for exempt farm equipment.
Hydroponic forage units.
Identification ear tags.
Installation of exempt farm machinery (also see “electrical”, “heating” and
“water supply systems” in this List).
Irrigation equipment (see “electrical systems” and “water supply
systems” in this List for tax exemption on installation).
Insurance contracts covering farming and farm property when the
insured property is owned or leased by a person engaged in the
business of farming. (See Bulletin No. 061 – Insurance).
Livestock semen. (For information on artificial insemination, see Bulletin
047 - Artificial Insemination Industry)
Manure slurry tanks and liners for manure lagoons.
Manure separators, digesters and related pumping systems; chemicals
used in the treatment of livestock waste.
Milk cooling tanks.
Milk strainers and filters.
Mink farming supplies such as, pelting boards, pelt cleaning fluids and
Bulletin No. 018
Farm-Use Equipment and Other Items
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compounds, mink food and fleshing tools.
Moisture meters, temperature probes and sample probes for handling
and storing grain and vegetable crops.
Monitoring devices used in the care of livestock, such as a video scanner
installed in a birthing room.
Motors for exempt farm machinery (electric motors, gas or combustion
engines).
Mowers, tillers and windrow compost turners for farm and garden
tractors.
Pasteurizers.
Plumbing systems and components (see “water supply systems” below)
Post hole augers used for farm fencing.
Potato graders, washers, seed cutting machines, mobile potato boxes
(except truck boxes), pallets, bin loader piler, flumes and other
ventilating equipment for potatoes when used directly in the operation of
potato growing. (But ventilation flumes that are poured as part of the
concrete floor do not qualify for the exemption.)
Poultry pluckers, leg bands and thermometers.
Propane tanks used exclusively for grain drying.
Pumps used to keep water supply dugouts from freezing (also see
“water supply systems” in this List).
Refrigeration equipment purchased for use in the storage of fruit and
vegetables and other farm products grown commercially for sale.
Refrigeration equipment for use in the storage of dead stock.
Repair and installation services to exempt farm equipment (also see
“installation” listed above).
Repair parts or replacement parts for farm equipment. This includes
nuts, bolts, screws and other fasteners that a farmer uses to replace
parts on farm equipment, but not when purchased for other
miscellaneous uses.
Replacement parts custom manufactured (by a supplier of steel and
other materials) to specifications of the original farm equipment part, i.e.
the steel is cut, shaped, welded, drilled, etc. to duplicate the original part.
For these items the supplier must clearly describe the manufactured part
on the invoice. Tax is payable on steel and other materials purchased by
farmers for general purpose uses, including steel that has simply been
cut to length by the supplier. (See List “D” for parts manufactured by
farmers.)
Riding mowers.
Safety accessories that are required under The Highway Traffic Act and
are designed exclusively for installation on farm machinery, e.g.
clearance lights.
Scales for weighing farm produce and livestock.
Sheep shears and clippers.
Snow blowers designed to be mounted on farm tractors.
Silver nitrate sticks.
Soil testers.
Spraying or spreading equipment for fertilizers, insecticides or weed
control chemicals including crop sprayers for all-terrain vehicles.
Surficants, defoamers and wetting agents purchased for use with
fertilizers, insecticides, fungicides, herbicides, rodenticides and weed
control chemicals.
Bulletin No. 018
Farm-Use Equipment and Other Items
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Tanks and containers that are designed to be attached or pulled behind
a fertilizer, insecticide, weed control sprayer or other exempt farm
equipment. Portable tanks specifically designed to haul fertilizer,
chemicals or water to the field sprayer are exempt when purchased by a
farmer.
Tattooing tools and ink.
Teat dip, dilators, instruments and protectors.
Temperature alarm systems used in caring of livestock.
Udder supports.
Ventilation fans, dust collectors and dust filters for buildings that are
used for confining livestock and poultry or for the storage of crops.
Veterinary equipment purchased for the farmer's own use in the care of
livestock.
Water supply systems used principally for farm production (e.g. for use in
watering livestock, spraying or irrigating crops). The system must be
located in, or connected to a production area and includes:
- The well equipment, (e.g. casing, well cribbing or pitless adapters,
well head connections and piping, pumps, injectors and foot valves)
- The distribution system leading to and in the production areas (e.g.
piping, pipe accessories, valves, hydrants, watering bowls)
- Labour to install the well equipment and distribution system leading
to the production area, including electrical hook-up.
Please note: The cost of materials and labour to install pipe and
plumbing fixtures which serve the farmhouse and other nonproduction areas, are taxable.
If the well is for a water pressure system intended mainly for household
use, (even if there are water taps or hose connections placed on the
outside of the house or at the wellhead) the total cost of materials and
labour to install the water system is taxable
Weed burners.
Welding rods and wire.
Wood chips and shavings used in the care of livestock.
List “B”
THE SELLER IS NOT REQUIRED TO OBTAIN A FARM-USE
Unconditionally CERTIFICATE TO SUPPORT THE SALE OF ANY OF THE FOLLOWING
exempt items
EXEMPT ITEMS:
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Agricultural feeds.
Animals considered livestock (as described in section 1).
Barn pens, stalls and stanchions.
Binder twine, baler twine and baling wire.
Cattle chutes and squeezes.
Combines.
Cow mats.
Cow trainers.
Cream separators.
Cultivators.
Discs.
Farm horses, including horses for cattle ranching, raising of horses for
sale, horses used in production of estrogen and race horses.
Farrowing crates and pens.
Feed grinders, crushers, rollers, mills and mixers used by farmers for
Bulletin No. 018
Farm-Use Equipment and Other Items
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processing feed for their livestock.
Forage harvesters.
Harrows (chain, disc or tooth).
Haying equipment designed for farm use including mowers, loaders,
presses, balers, rakes, sweeps and stack movers.
Livestock feeders, waterers and other equipment designed for use in the
production, handling, feeding or care of livestock but not silos used for
storing silage.
Livestock protector devices used to protect cattle from insects and other
pests (e.g. cattle oilers, back rubbers, dust bags and ear tags).
Manure loaders, spreaders and related pumping systems.
Milking machines.
One-way tillers.
Organic fertilizer, peat moss, top soil, loam, manure, bone meal,
compost and lawn dressing.
Plants or plant products that ordinarily constitute food or drink for human
consumption including seeds, tubers, bulbs, corms and rhizomes used to
raise the plants.
Potato planters and diggers.
Poultry brooders, incubators, cages, nests, pit cleaners and other
equipment designed for use in the handling, feeding or care of poultry.
Rock pickers and weeders.
Seeders, seed drills and seed treating equipment.
Silage cutters.
Silo unloaders.
Slatted flooring for livestock barns.
Straw bunchers and chaff savers.
Straw choppers and spreaders including extensions.
Swathers and swath turners.
Tillage plows.
Vegetable harvesters.
Veterinary services.
Section 3 – PURCHASES THAT ARE NOT EXEMPT FOR FARM USE
List “C”
Taxable items
THE FOLLOWING ITEMS ARE ALWAYS TAXABLE AT THE TIME OF
SALE:
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Aerial photographs, including infrared crop photographs.
Air compressors and related equipment (see List “D” for exception).
Air conditioners for household use.
Aircraft not specifically designed and licensed for farm spraying.
All-terrain vehicles (see List “D” for exception).
Antifreeze and other additives.
Automobiles, trucks, trailers and other vehicles required to be licensed
under The Drivers and Vehicles Act and all parts, repairs and service to
such vehicles.
Batteries, tires and tubes of a size or type that can be used for a car or
truck.
Boxes for trucks required to be licensed under The Drivers and Vehicles
Act.
Bulletin No. 018
Farm-Use Equipment and Other Items
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Page 8 of 10
Cellular telephones.
Chain saws.
Computers and software (including cable installation), but computers
and software that are a part of exempt farm equipment may be
purchased tax exempt.
Construction materials and pre-fabricated packages for barns, animal
shelters and other farm buildings or structures, whether movable or
immovable (except certain farm storage structures as per List “D”). The
labour charges to construct, erect or repair these buildings are not
taxable.
Culverts.
Disinfectants.
Field marker dye and field marker soap.
Fuel storage tanks, pumps, hoses, etc. for handling fuel except for
propane tanks if used exclusively for a grain dryer.
Grease and lubricating oil.
Hardware, electrical supplies and plumbing supplies (except when part
of exempt water supply systems or other exempt farm machinery).
Heaters, radios and air conditioning equipment, when purchased
separately from, and not specifically designed for farm machinery.
Herding dogs.
Hoists and power take-offs on equipment used for hauling sand, gravel,
earth, etc.
Household appliances.
Installation and repair services of plumbing, heating, cooling, electrical,
electronic and telecommunication systems for general-use (see List “A”
for exemption). For more information, see Bulletin No. 031 – Mechanical
and Electrical Trades.
Lawn mowers.
Lighting plants, generators and emergency power transfer switches for
domestic use.
Lumber, paint and other building materials (see List “D” for exception).
Motorcycles.
Nuts, bolts, screws and other fasteners (see “repair parts” under List “A”
for exception).
Road construction and maintenance equipment.
Rope (rope for haystack covers is exempted).
Safety clothing and safety equipment.
Sand and gravel.
Scales for weighing trucks.
Shop equipment, including all power equipment and hand tools.
Silos.
Soaps, detergents and other cleaning compounds.
Snow blowers and attachments (tractor-mounted snow blowers used
principally for farm-use are exempt).
Snowmobiles.
Steel pipe, angle iron, sheet steel and other materials purchased for
general farm use (see List “D” for exception).
Tarpaulins and other covers for trucks or general purpose use.
Trailers that are required to be licensed under The Drivers and Vehicles
Act.
Water pressure systems used mainly for household use.
Bulletin No. 018
Farm-Use Equipment and Other Items
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Water softeners, including water softener salt and iron removers.
Welding equipment of all types and welding gases.
Section 4 - EXEMPTION ALLOWED BY REFUND
List “D”
THE FOLLOWING ITEMS MAY BE ELIGIBLE FOR A TAX REFUND
WHERE THE TAXATION DIVISION, UPON INVESTIGATION, IS
SATISFIED THAT THE PURCHASER IS USING IT PRINCIPALLY FOR
FARMING:
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Air compressors for use in manure pumping systems.
All-terrain vehicles.
Farm storage buildings constructed from steel or pre-cast concrete and
designed and used specifically for storing potatoes, grain and other field
crops grown commercially for sale. (For additional information, see
Bulletin No. 021– Granaries and Farm Storage Buildings)
Liners for manure lagoons purchased from a contractor in a one price
supply and install contract. The farmer must attach documentation
proving that the contractor paid the tax in respect of the liner.
Roto tillers.
Saddles, bridles, horse shoes, bits and halters.
Farm fencing
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Lumber, steel tubing, railway ties and other miscellaneous materials are
generally subject to RST when purchased by farmers. Therefore,
businesses must collect the tax when selling these materials to farmers.
However, farmers may apply to the Taxation Division for a refund of the
tax paid if these materials were purchased and used exclusively to
construct fencing for raising livestock or poultry.
Machinery and
equipment
manufactured
by farmers
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Steel, bolts, screws, hardware and other general purpose materials and
parts purchased by farmers are generally taxable. Therefore, businesses
must collect the tax on sales of these materials to farmers. However,
farmers who purchase these materials to manufacture farm equipment,
or repair parts for farm equipment, may apply to the Taxation Division for
a refund of the tax paid. If upon review of the application, the Taxation
Division is satisfied that the materials and parts were purchased to
manufacture equipment or a part therefor used principally for farming,
the tax on these items may be refunded to the farmer.
Section 5 – FUEL AND ELECTRICITY
Marked Fuel,
electricity
propane,
bunker fuel,
crude oil and
natural gas
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Farmers may purchase marked fuel for the following uses:
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To operate agricultural machinery while carrying out agricultural work
on farm land.
To operate farm trucks with a “Farm Plate” issued under The Drivers
and Vehicles Act.
To heat or cool farm buildings situated on a farm used exclusively for
the growing of farm crops or raising livestock.
To heat a farm residence.
To dry grain in the course of farming, including the operation of
aeration fans.
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Farm-Use Equipment and Other Items
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Electricity, propane, bunker fuel, crude oil and natural gas may be
purchased exempt for the following uses:
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To heat or cool farm buildings situated on a farm used exclusively for
the growing of farm crops or raising livestock.
To heat a farm residence.
To dry grain in the course of farming, including the operation of
aeration fans.
For more details regarding fuel and electricity for farmers, contact one of
the Taxation Division offices listed below.
FURTHER INFORMATION
This bulletin is intended to serve as a guideline and is not all-inclusive. For the specific wording
of the law, please refer to the Retail Sales Tax Act and Regulations. Further information may be
obtained from:
Winnipeg Office
Manitoba Finance
Taxation Division
101 - 401 York Avenue
Winnipeg, Manitoba R3C 0P8
Telephone (204) 945-5603
Manitoba Toll Free 1-800-782-0318
Fax (204) 948-2087
Westman Regional Office
Manitoba Finance
Taxation Division
314, 340 - 9th Street
Brandon, Manitoba R7A 6C2
Fax (204) 726-6763
E-mail: [email protected]
ONLINE SERVICES
Our Web site at manitoba.ca/finance/taxation provides tax forms and publications about taxes
administered by Taxation Division, and a link to Manitoba’s laws and regulations. Forms and
publications can also be obtained by contacting the Taxation Division.
Our online service at manitoba.ca/TAXcess provides a simple, secure way to apply for, and to
file, pay and view your Taxation Division tax accounts.